Government officials in Kazakhstan have approved regulations that will govern the interactions between authorized currency trading platforms and traditional financial institutions. The new rules will allow registered cryptocurrency exchanges to have bank accounts in the country.
Pilot project to develop Kazakhstan into a regional cryptographic center
A working group of representatives from the Ministry of Digital Development, the central bank, financial regulators and financial regulators has approved regulations that allow cryptographic exchanges registered at the Astana International Financial Center (AIFC) to be handled by second-tier banks. in Kazakhstan. as members of the financial and digital assets sectors, the ministry announced.
The initiative is part of a project to introduce a regulatory framework that facilitates the development of Kazakhstan’s potential as a regional cryptographic center. It will be implemented as a pilot throughout 2022 with the participation of cryptocurrency trading platforms licensed by the AIFC Financial Services Authority (AFSA), a press release detailed.
Kazakhstan attracted cryptocurrency miners when China cracked down on the industry in May last year. According to the Minister of Digital Development, Bagdat Musin, however, the cryptographic industry is not only mining, but also includes cryptographic exchanges, digital wallets and other blockchain platforms. The top government official elaborated:
It’s like other industries, which can and should work for the benefit of our economy. We need to make money from cryptocurrency – this is the next level of development in financial technologies.
Musin insisted that the Central Asian nation needs to create a complete ecosystem for digital assets extracted from Kazakhstan’s electricity to be traded on local stock exchanges and the respective revenues remain in the country.
The Digital Ministry stressed that the pilot project will allow regulated trade in digital currencies, which will ensure adequate protection for both retail investors and professionals. If its implementation is successful, the Nur-Sultan authorities plan to make changes to the country’s legislation and the acts governing the AIFC.
The AIFC Financial Services Regulatory Committee is now the only body overseeing the activities of fintech companies in Kazakhstan, said AFSA Director Nurkhat Kushimov. All entities applying for a license are thoroughly reviewed and supervised, he stressed. “Our goal is to create an environment in which only reliable and stable companies operate that enjoy the trust of customers,” he said.
The positive development for the local cryptocurrency industry comes after a recent statement from the National Bank of Kazakhstan announcing that it is closely following the market while pointing out that it is too early to talk about the legalization of cryptocurrencies. At the same time, the monetary authority said it intends to harness the potential for innovation offered by cryptographic technologies.
Do you expect Kazakhstan to adopt more cryptocurrency-friendly regulations in the future? Tell us in the comments section below.
Image credits: Shutterstock, Pixabay, Wiki Commons
Exemption from liability: This article is for informational purposes only. It is not a direct offer or solicitation of a purchase or sale offer, nor a recommendation or endorsement of any product, service, or business. Bitcoin.com does not offer investment, tax, legal or accounting advice. Neither the company nor the author is liable, directly or indirectly, for any damage or loss caused or allegedly caused by the use or reliance on any content, goods or services mentioned in this article.